Nikola, a Tesla competitor valued at $13.28 billion, makes only $36,000 revenue in second quarter. Are we in electric vehicle bubble?

Are we in electric vehicle bubble? As startups ride on the success of Tesla, 2020 is shaping out to be a year when electric vehicle companies with names like Fisker, Karma and Rivian are raising millions of dollars at a time when Tesla’s rampaging stock price has made the sector unexpectedly hot.

As CNBC’s Jim Cramer pointed out on Tuesday, Tesla success is real and the company may be the only exception. “I think the rest of the electric vehicle space looks like a boom, and then more like a bubble, one that’s already started to burst,” the “Mad Money” host said. “We keep seeing more and more of them come public, often via reverse mergers with special purpose acquisition vehicles,” known as SPACs, “and after some big moves higher, their stocks have started to implode.”

“The bull market in Tesla is real and it’s spectacular. The bull market in the rest of the electric vehicle plays feels way less substantial, and once again I’m warning you to stay away, no matter how awesome it seems,” the “Mad Money” host said.

An example of the EV bubble is probably none other than Nikola, a Tesla competitor that is currently valued at $13.28 billion. Yesterday, the company released its first quarterly report as a public company, following its merger with special purpose acquisition company VectoIQ in June.

According to a filing with the Securities and Exchange Commission (SEC), its second quarter revenue was $36,000. And to make things worse, its entire second quarter revenue of $36,000 was for solar panels for Executive Chairman Trevor Milton.

The company seems to be bleeding cash. As of June 30, 2020 and December 31, 2019, the Company had $3 thousand and $51 thousand, respectively.

Below is what the filing said:

““During the three months ended June 30, 2020 and 2019 the Company recorded solar revenues of $0.03 million and $0.04 million, respectively, for the provision of solar installation services to the Executive Chairman, which are billed on time and materials basis,” the company’s 10-Q said. “During the six months ended June 30, 2020 and 2019 the Company recorded solar revenues of $0.08 million and $0.06 million, respectively, for the provision of solar installation services to the Executive Chairman. As of June 30, 2020 and December 31, 2019, the Company had $3 thousand and $51 thousand, respectively, outstanding in accounts receivable related to solar installation services. The outstanding balance was paid subsequent to period end.”

Founded in 2014 by Trevor Milton, the Salt Lake City-based company builds heavy-duty transport trucks using hybrid hydrogen-electric powertrains. Named after inventor Nikola Tesla, the company designs and manufactures electric vehicles, vehicle components, energy storage systems, and electric vehicle drivetrains.